HOW TO KEEP A BUDGET

A budget is the key to managing your personal finances. If you start keeping one sooner rather than later, you’ll have a better relationship with your money in the future…and probably more of it, too.

Here are some tips:

Spend a month keeping a money diary, writing down even the tiniest of expenses. Once you see your expenses down on paper, you’ll be better able to see where your money is going, and what changes you can make in your spending habits.

Try to keep your record-keeping as specific as possible.

After your money diary, make a list of potential cutbacks. Mark the areas where you can survive on spending less.

Make adjustments each month as you discover what works and what doesn’t.

After you’ve made up your budget, make a "Wish List" of things you’d like or need, but don’t think you can afford right now. You’ll find that many of them will come within reach once you stick to a budget. Make it your goal to be able to purchase at least one of your "Wish List" items!

Use our Budget Worksheet to keep your money diary and your new budget.

Ways to make it easier to stick to your budget:

Pay off your credit cards each month
Resist the urge to buy on impulse
Beware the dangers of shopping with a friend who spends more than you do
Take your lunch to school or work at least a few days a week
Avoid vending machines and convenience stores
Visit your ATM once a week, and plan ahead to figure out how much cash you’ll need
Entertain at home!